Side-by-side credit pricing comparison from Pillar 3 disclosures.
On a representative BBB+ EUR 25M 5-year term loan, BNP Paribas is the cheaper lender by 12bp in minimum spread. For a EUR 25M facility, that's EUR 29,404 per year.
| Metric | BNP Paribas France |
Deutsche Bank Germany |
|---|---|---|
| IRB approach | A-IRB | Mixed |
| Cost-to-income | 61.8% | 64.0% |
| Effective tax rate | 26.2% | 26.8% |
| Avg corporate PD | 0.98% | 4.26% |
| Avg LGD unsecured | 37.0% | 31.1% |
| Avg LGD secured | 22.0% | 20.0% |
| Funding spread (bp) | 15bp | 20bp |
| Corporate EAD | EUR 375bn | EUR 244bn |
Both banks priced on the exact same deal — 150bp spread, 20bp commitment fee, 60-month maturity. Higher RAROC means the bank earns more from this deal. Lower min-spread means the borrower gets a better rate.
| Component | BNP Paribas | Deutsche Bank |
|---|---|---|
| Annual revenue | EUR 385,000 | EUR 385,000 |
| Operating cost | EUR 154,000 | EUR 154,000 |
| Expected loss | EUR 28,750 | EUR 28,750 |
| Capital required (FPE) | EUR 2,451,320 | EUR 2,451,320 |
| RAROC (after tax) | 7.19% | 6.70% |
| Min spread for 12% RAROC | 257bp | 268bp |
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